Term sheets: crypto-veto clause

When not making “simple agreements for future tokens”, VC funds are increasingly introducing veto rights over token related offerings in their term sheets and, interestingly, in management employment agreements. The (US) National Venture Capital Association has now updated its Model Certificate of Incorporation accordingly: “[Founders shall not] cause or permit any of its subsidiaries to, without approval of the [Board of Directors, including the Series A Director], sell, issue, sponsor, create or distribute any digital tokens, cryptocurrency or other blockchain-based assets, including through a pre-sale, initial coin offering, token distribution event or crowdfunding, or through the issuance of any instrument convertible into or exchangeable for Tokens.” The full document can be found: here.